Everything You Should Know About The CryptoCurrency – Part 1
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What is CryptoCurrency?
CryptoCurrencies are the Digital or alternative currencies that don’t have any physical form. Cryptography is used for such currency to make secure transactions. In Such Transaction information or transaction details are converted into such code that is uncrackable. So everything in such transaction is traced by a code. Usually, CryptoCurrency is not controlled by any country, so the value of such currency is determined by the market.
Why was CryptoCurrency Invented?
Cryptocurrency started with the invention of Bitcoin in 2009 by the unknown entity known as “Satoshi Nakamoto”. A start-up company producing a new form of money – digital currency was born. This decentralized currency is not controlled by governments or any organization and as such is open to all. It has never and will never be afforded copyright. Currently used by over hundreds of thousands of people per day, and there is no middle man or no credit company. Bitcoin is an accepted currency on such major sites as WordPress, Piratebay, Reddit, and OK Cupid. Today there is a whole host of other digital currencies which work on the same basis but use different code eg. Litecoin and Primecoin.
Cryptocurrencies are legal all over the world with the exception of Iceland; although there have been restrictions made to their usage in other countries such as China. The biggest downfall of a Cryptocurrency is the potential for fraud through inside party infiltration of security systems: however, whilst this is logistically possible, but the cost would be sky high and unbelievable skill level would require. “Miners”, or members of the public, rewarded for successful handling of cryptocurrency, use resource-intensive software to help secure the network allowing it to mathematically solve equations and directly impede attempted fraud.
A cryptocurrency only has value in its exchange – it has no inherent value – much the same as a ‘conventional’ currency. A dollar is only worth what someone is willing to give you for that dollar. If everyone stops accepting the dollar – it becomes worthless. Hence cryptocurrency is only worth what someone will exchange for it. There is no Federal Reserve to issue new digital currency, theoretically making it more stable. New cryptocurrency is released, Bitcoin, for example, releases more each year but the exact amount decreases proportionally year on year; the Federal reserve reissues in a reactionary fashion whenever it is required Thus, the more business and people that accept a form of a cryptocurrency – the more stable it will become.
What makes CryptoCurrency Different
So what makes cryptocurrency so different from just using regular digital money? Well, there are a few key differences that we will cover in this article. Firstly, there’s no central bank anywhere that determines its value or controls the flow in which new money is being created. This makes the manipulation of the amount of money in existence not controlled by for the usual institutions we are used to. For
Firstly, there’s no central bank anywhere that determines its value or controls the flow in which new money is being created. This makes the manipulation of the amount of money in existence not controlled by for the usual institutions we are used to. For example, the US dollar is controlled by the Federal Reserve, but Bitcoin, which is one of the most popular cryptocurrencies today, is controlled by an algorithm that no individual person, company or country can change.
The value of a fiat cryptocurrency is really just based on what other users are willing to give up for it. No countries are involved, so the welfare of a particular nation’s economy doesn’t affect currency value. Since value is based solely on supply and demand, it functions like the way commodities do in the stock market.
Another aspect that differentiates cryptocurrencies from regular currencies is the low transaction fees to transfer money all over the world. The fee is independent of distance, country borders etc.. This makes it much easier to transfer enormous sums of money globally or to make micro payments between people who live in different countries.
Why do some people love cryptocurrency where some people see it as pure evil?
There are multiple reasons to love it or hate it. For example, the transaction made using Cryptocurrency cannot be traced like Credit Card or Bank Account that is usually linked to a specific transaction. All the transactions made using cryptocurrency (e.g. Bitcoin) can be traced forever with the specific “alias” or key that performed it. This makes for a lot of discussions and there are argues that Bitcoin is both untraceable and 100 percent traceable. Obviously, that has an immediate appeal in shadier sectors, and even though media often portrays cryptocurrencies as something only used by criminals, but the truth is that most people who use cryptocurrency are just regular people. Cryptocurrency also creates a lot of discussion because of the way it is making it possible to maintain some privacy in a world where someone is always looking over our shoulders. Be it a government, an Internet service provider, or data mongering corporations, cryptocurrencies such as Dash(earlier Darkcoin), Blackcoin or Zerocoin are constantly trying to increase the privacy of the individual.
How do you buy CryptoCurrency?
As of late, the world of cryptocurrency has emerged in full force contributing to a run to buy up hundreds of stocks in the newest digital currency market that springs up. However, even if you are familiar with this emerging market, there may be a few basic things you are unaware of which can have a detrimental effect on your trading power. Read on to learn more about how to buy cryptocurrency in a secure way.
Start by opening up an account
In digital currency, the term ‘wallet’ is used to represent your online currency account. This account will provide you the access to the crypto market from where you can buy all types of cryptocurrencies. Regardless of which wallet you choose, once you open the wallet you can then accept and disperse cryptocurrency according to your needs. Popular cryptocurrency wallets include Blockchain and Coinbase.
Buying Cryptocurrency with and without using PayPal or Credit Card or Bank Account
Your wallet really isn’t any good until you can fill it with the digital currency. The next step is to fill your wallet up. To ensure that you aren’t dealing with any fake service provider, choose to use a cryptocurrency exchange that has a big name and excellent reputation attached to it. Once you sign up for an account you will then be required to upload funds to the exchange. Generally, you can do this through PayPal, credit cards, or a bank transfer. All of these methods are considered safe if you choose the right exchange company. If you prefer not to go through financial institutions, there are other options for cryptocurrency to look to. For example, buy cryptocurrency for cash by trading with someone in real life. To find such people who trade in cryptocurrency for cash, a common place to look is at localbitcoins.com.
After you find an individual who will sell the coins to you, all you have to do is provide them with your digital wallet address and you should have the funds in your wallet within 10 minutes after the purchase. It’s that simple!
Why should I buy cryptocurrency?
There are so many reasons why you should buy cryptocurrency but most important reason is; it is easy to start and you can manage to have so many different accounts. And you can be safe from hackers, cyber criminals, and other bad influences because you don’t need to put your personal information anywhere and you won’t need a real name to buy cryptocurrency. Just with a nickname, you can buy all the coins and digital money you need or you want. Other reason you should buy this currency is because since the technology is changing and going forward, it is really important that we can go forward with it too. Millions of users already use it, and its usage is increasing every day, and as always the first ones will get the more advantages, knowledge, and experience in this field.
It is not a safe investment, rather it should probably be seen as a new field of study with a potential to make a huge difference in the future. A lot of people believe that CryptoCurrency such as Bitcoin, Litecoin, Dash etc. can have an enormous impact on society. Not just by changing economics but also by changing bigger concepts such as law, politics, and freedom.
What are the most popular CryptoCurrencies?
• Bitcoin: Bitcoin was started in 2009 by Satoshi Nakamoto, and this is the company who started this all. Bitcoin is the most popular Cryptocurrencies that is accepted widely, and it is also easy to get.
• Litecoin: Litecoin started in 2011 and this cryptocurrency can be mined. You can use this to transact goods and services.
• Monero: Do you care more about privacy and don’t want to be traced easily? Bitcoin is not for you. Monero usage ring signature technology that makes the transaction more secure and untraceable.
• Dash (Digital Cash): Dash Currency is another secure way to transact. It usage anonymization technology. Dash Cryptocurrency is more secure and fast. It was known as DarkCoin, but now they have changed the name to not make people assume its connection with the Dark Web
• Ripple: Ripple is actually a RTGS (Real Time Gross Settlement System), a Currency Exchange and Remittance Network. It is also used by many banks to reduce costs. It’s not very secure if you don’t want to get traced.
• Dogecoin: This cryptocurrency is widely used to give charity or collect the donation. It was initially made as “Joke Currency”, but now has gained much popularity.
• MaidSafeCoin: You can exchange Safecoin for providing resources, like your Storage Space, CPU, Bandwidth etc.. The Process of getting Safecoin and providing resources is called Farming.
• Ethereum: Etherreum is another popular Cryptocurrency that you can trust, but it has recently seen many ups and downs.
Related; What is Bitcoin Mining
Can I transfer cryptocurrency to a bank account or exchange for cash?
Yes, you can absolutely transfer cryptocurrency to your bank account or exchange for cash. There are many fast and safe options out there that are very good at managing both crypto currency and fiat currency such as USD or Yuan. They have the security of a bank, and the flexibility of a crypto currency exchange, so it is very easy to transfer money to your bank account.
KYC or Know Your Customer laws and Loss of Security
In many countries, however, there are restrictions on managing other people’s money and often “know your customer” laws are in place to try to manage money laundering and other criminal activity. Therefore, you have to take into account that the benefits of anonymity that many crypto currencies provide are often forfeited by transferring money directly from your crypto currency account to your bank account.
By giving up your anonymity and disclosing your assets you might be subject to tax laws. This is, of course, different depending on what bank you use or from what country your citizenship originates but generally, it is highly recommended to be very careful about disclosing your assets without consulting a tax attorney.
Safe choices (Buy and Sell Cryptocurrency or Digital Currency for Local Money or Cash)
Coinbase.com: Coinbase is one of the largest exchange with banking services in the US that you can use to buy and sell digital currency. You can connect sell to convert in local money
Kraken.com: Kraken is another option if you want to trade digital currency
Localbitcoins.com: You can also visit LocalBitcoin’s website to buy or sell digital bitcoins for cash
Should my company accept cryptocurrency?
Crypto currency is a modern payment method that has been adopted by an increasing number of companies. However, even if this number is increasing substantially, the truth is that it is rather small in comparison with the total amount of companies from the entire world. A lot of companies are still asking themselves if they should accept crypto currency and if you have a company and you are wondering whether to adopt crypto currency as a payment method, you should know that this is a complex decision that should be carefully analyzed.
Since cryptocurrency has many benefits, it seems fair to begin with all the pros. This way you will be able to learn more about this, and therefore you can take the best decision for your company. Here is the list of the most important pros that should be taken into account:
Pros or Advantages of Crypto Currency
Crypto currency is a safer method of payment, and therefore people won’t have to worry about losing any money, or even worse, they won’t have to fear about identity theft; as a company, any payment that is made is irreversible, and therefore you do not have to worry about charge backs that you can often see from companies like PayPal, Visa or MasterCard.
Early adopters approval
It seems that crypto currency represents the future, and even if there is a long way until it will reach its true potential, it is on the right track; Being an early adopter as a company gives you access to customers who are also early adopters.
You will be able to have clients from different countries, and therefore you will increase your profit. Additionally, it seems that people prefer this method because this way they do not lose money while exchanging currencies.
Low transaction fees
The fee to transfer money both between business to business as well as to and from customers are substantially cheaper than all other online payment methods.
Cons or Disadvantages of Cryptocurrency
As you know, in every situation there are always pros and cons, and therefore you should take a decision only after you have heard both the good and the bad. These are the Disadvantages or the Cons of the CryptoCurrency:
Little investment to manage
Knowledge is required to implement and manage another payment system. It is very easy to start with, but it will require time to manage just like any other payment method. So you may need to hire an expert at the start, and then you can learn gradually. Or you can learn it and then start to get rid of this disadvantage.
It is currently extremely volatile, and even though there are ways to avoid getting impacted by volatility it requires some extra management and time to learn.
Should I invest in Cryptocurrency?
Cryptocurrencies are very useful in the day to day life, as they bring a major alternative to the saturated market of real life currencies, so lots of people from all over the world embrace this new wave. However, these currencies can also be thought of as an investment, so people can get lots of money out of them in the long run if they do it properly.
Before investing in such currencies you need to figure out their value. https://www.coinbase.com/ is the best source for anyone that wants to find the current price for the popular currencies or access the merchants that support cryptocurrency payments.
When it comes to investing in crypto currencies, a good idea is to take it slow, as you don’t want to spend a lot of cash in the beginning. Instead, investigate the market prices for a few days and see how many chances of success you might have. Always remember that all cryptocurrencies don’t have an authority that controls their price, so you can easily encounter market crashes at all times. It’s important to think out of the box and invest in these currencies, of course, but you should always take the downsides into consideration before you start making any type of payment.
After that, you should consider setting up your wallet, as this is where you will store your virtual money. Check reviews and make sure that the wallet you are going to use is secure, as that is crucial. Once you set it up you can easily add funds to it without a problem. You can deposit and withdraw funds at any time from the most virtual wallets, and the payments are done very fast, which is more than refreshing for any user.
If you just want to invest in Bitcoins or Ethereum, then you can check the current price and change on https://www.coindesk.com/price/, and you can also view lots of relevant information regarding the current price and fluctuations. In addition, here you can also calculate the amount of money you spend of each Bitcoin amount, a feature that is very useful especially for those people that want to invest a lot of money in the long run.
In summary, investing in cryptocurrency is a bold move. But, one that can bring numerous profits and benefits in the long run is also risky. There are risks involved in all this, as we stated above, but in the end without risking you won’t be able to get the highest profit margin.
What are Smart Contracts?
As crypto currency and bitcoin has become more common and are being used more and more throughout the world many companies are developing new technologies that can be used with currency networks like Bitcoin.How do Smart Contracts work?
So what exactly are Smart Contracts and how do they work? Think of them like a contract that is verified by computer instead of by a person or organization. A smart contract allows for information like the conditions and outcomes of legally binding agreements to be encoded into a computer program such as Bitcoin. This allows for programs to get rid of the middleman that is there to ensure that those legal contracts and agreements are being fulfilled as the encoding will do that for the program. The way Smart Contracts work within Bitcoin is that they allow for the transfer of assets with an encoded signature. Many programs especially Bitcoin are finding that this helps to increase the speed and efficiency of their transactions and it also adds another layer of security and trust when it comes to the execution of the contract and agreements.
What makes them different from normal contracts?
Smart Contracts that are associated with Bitcoin are contracts that are associated with funds. What makes them different is that they are verified through the network and the program rather than by an authority. When transactions occur that use Smart Contracts the funds are paid as set forth in the agreement. For example, if you are a Bitcoin user and have a smart contract that says when transactions are made funds will be paid to your account and then distributed as stated in the smart contract. If you have contracts that need to be paid the money from your transaction will be distributed to that payment first and then to others as needed. Smart Contracts allow for users to set forth a contract and have it automatically fulfilled by a reliable system that can keep track of contracts. The difference is that Smart Contracts takes away the middle man, therefore also the human error.
What can Smart Contracts do?
Smart Contracts distribute and execute contracts through multiple networks, Bitcoin can be classified as one of these networks. Users of Bitcoin can use a single smart contract to interact with other services like PayPal, Google, and EBay which allows for them to use it to efficiently, quickly, and safely make transactions with multiple programs. The reason Bitcoin and Smart Contracts are taking off is that it is allowing for crypto currency to be more efficient and it also provides an efficient legal system throughout the Bitcoin network.
Smart Contracts allow for Bitcoin users to develop contracts for the trading of major assets across the global trading exchange. This allows for contracts to be made quickly and efficiently and they are enforced through the encoding rather than by a third party. This allows for global trading and investments to be conducted quickly and safely.